The uranium space caught some attention last week after an important vote in Japan opened the door for nuclear reactor restarts. Here’s an excerpt from Haywood Mining Team’s week in review:

“The Broker Average Price (BAP) for U3O8 rose 8.1% this week, up 3.8% on Thursday alone, before finishing at $41.00 per pound U3O8 on Friday evening. Final safety inspections of the Sendai units by the NRA in Japan should mean initial restarts in the first half of 2015.”

We should note that the $40 level represents important long-term support/resistance for uranium, which makes Friday’s close above $40 especially significant:


Meanwhile the keystone stock in the uranium space,  Cameco (CCJ), posted a large rally for the week and broke above an important downtrend line:


Breakout from multi-month falling wedge has a minimum upside target of ~$21

While CCJ is certainly the safer, more stable way to play uranium (the stock pays a roughly 2% dividend and the chart shows major support near $16) a leading explorer in the space is Fission Uranium (FCU.TO):


There is a strong probability that FCU hammered out a bottom during the past month. Friday’s session printed the most bullish candlestick possible; a gap higher above the previous session’s high with a large bullish body and a close at the session high. Such a candlestick occurring within the context of a multi-month bottoming process often leads to much higher prices over the ensuing days/weeks.

We are targeting $1.20 on FCU over the near term (1-3 months) and $3.00 is our long-term target (12-18 months).